Internal Audit Checklist of Administration Deptt.

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C Published: 31 August 2013
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ADMINISTRATION

· Enquire into the activities that are covered under the Administration of the organisation. Normally the following
activities would come within the Administration Department of an organisation.

o Security Services
o Canteen Services
o Houskeeping Services
o Courier Services
o Fax / Photo copy machines
o Telephone lines
o Renovation and routine repairs
o Despatch of correspondence
o Incoming correspondence
o Visitors Register at the Reception
o Travel – air / train / taxi
o Hotel reservations
o Fixed Assets for maintenance / repair
o Vehicles
o Guest Houses
o Colony upkeep / maintenance.

· Security

o Check the contract with the security contractor.

o Ensure that the terms and conditions and other general matters are being complied with by the
contractor.
o The bill of the contractor should be accompanied by the attendance sheet of the security personnel
deployed during a particular period / month.
o The bill of the contractor should be accompanied by a certificate from the contractor that the statutory
obligations have been complied with by the contractor.
o The Bill should be approved by the Head of the Administration.
o Ensure that a specific clause has been put in the contract regarding the PF / ESI liability of the
employer of security personnel. It should be clearly mentioned in the contract as to who will bear
the employer’s contribution towards PF / ESI. ( The company or the contractor.)
o In case the contractor is to bear the PF liability then the company should ask for copies of monthly
challans in respect of PF deposits from the contractor.
o Study the various clauses of the contract and ensure their compliance.
o Ensure that contract has been awarded to the contractor on the best possible terms.
Quotations/offers of other contractors should be verified to ensure that financial terms a well as
general profile/standing & reputation of the contractors have been considered for appointing the
contractor.
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 o Check that the security personnel are properly deployed over the area under their jurisdiction and
responsibility. Ask for a deployment plan from the Head of security.
o Check the Registers and records maintained at the security gates/ security points and ensure that the
registers and records are kept uptodate / maintained properly / all columns are filled in completely.
o In case Gun men have been deployed ensure that they hold valid licences and that the licences are
renewed in time.
o Ascertain the responsibility of the Security Department / contractor in the form of a check list. The
check list should give point wise duties of the security. The activities/work to be performed by
Housekeeping should be documented in the form of a check list.

· Canteen Services

o Check the contract with the canteen contractor and ensure that the terms and conditions of the
contract are being complied with.
o Check compliance with point No(s) 3 to 8 as stated in the case of security services. The points are
applicable to Canteen Services also.
o Ensure that a duly approved Rate list of food items has been prepared and is displayed at the
canteen.

· House keeping Services

o Check the contract with the Housekeeping contractor and ensure that the terms and conditions of the
contract are being complied with.
o Check compliance with point No(s)3 to 8 as stated in the case of security services. The points are
applicable to Housekeeping services also.
o Ascertain the responsibility of the Housekeeping Department / Contractor in the form of a check list.
The check list should give point wise duties of the Housekeeping / contractor. The activities / work
to be performed by Housekeeping should be documented in the form of a check list.

· Courier Services

o Check the contract with the courier companies.

o Ensure that the terms and conditions of the contract are complied with, by the contractor.
o Check that the Bill of courier is checked in detail with the copies of consignment Notes and the Proof
of delivery. The Administration Department should not pass the bill unless all the consignment
notes are matched with the Proof of Delivery (POD).
o The bill should be approved by the Head of Administration.
o Ensure that the Contract(s) have been awarded to the contractor / courier company on the best
possible terms. Quotations / Offers of other contractors / Courier companies should be verified to
ensure that the financial terms as well as the general profile / reputation of the courier agencies
have been considered before appointing the contractor / courier company.

· Fax Machines / Photocopy Machines

o Check the total number of fax machines installed and their location.
o Ensure that a budget has been fixed in respect of every single fax machine.
o Compare the Budget V/s Actual position in respect of all the fax machines and comment upon the
negative variances between the budget and actual.
o Ensure that a proper control is kept over the paper issued for photocopy purpose. A record should be
kept by the photocopy operator of the number of sheets of paper received in a month and the
number of photocopies made during that month. A monthly control report should be prepared.
o Ensure that system of requisition slips for fax / photocopy is in place. Requisition slip system would
ensure that there is no misuse of the fax/ photocopy machines.
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 o Ensure that the fax / photocopy machines are maintained properly and that the operators of the
machines do not allow any unauthorised entry of persons to operate machines.
o In case the work of photocopy has been given to an outside agency – check the contract entered into
with the party and ensure that the terms and conditions of the contract have been complied with.
o Ensure that the contract with the outside agency is renewed in time i.e. before the expiry of the
validity of the contract.
o A monthly record should be maintained by the company in respect of paper issued to the contractor
and the number of photocopies made during the month. The variation / differences should be
explained by the Department.
o In case the photocopy / fax work is carried out after the office hours the requisition slips be kept and
the employees instructed and encouraged to enter the details of number of photocopies made / fax
done, after the working hours in the register.

Telephones
o Ensure that a budgeted amount has been fixed in respect of every telephone. The budget amount
should be approved in writing.
o A monthly Budget v/s Actual statement – Telephone wise should be prepared and reviewed.
o In case the actual expenses exceed the budgeted amount on a quarterly /six monthly / annual basis,
ensure that the approval for the excess amount is obtained from the appropriate authority.
o Ensure that the telephone bills are duly approved / certified for payment by the concerned users.

· Guest House

o Check that the record of fixed assets installed at the Guest House is kept properly in a bound register
/ computer. The record of fixed assets (FA Register) should contain all the details of FA like -
Quantity / location/ Make & type / Identification Number / value etc.
o A six monthly verification of the FA should be carried out and the physical balances compared with
the book balances. The discrepancies should be reported.
o Similarly a record of electricity / water / and telephone bills should be kept in a register / computer.
o A register should be kept for recording all STD / ISD calls. The visitors should be requested to
enter the details of call made in the register.
o A bound register should be maintained to record on a daily basis the Bill number - amount and the
type of purchases made - Milk / Vegetables / Food items etc. The register should be kept upto
date.
o Per meal cost should be worked out on a monthly basis ( By dividing the total expenses on food /
milk / vegetables etc by the No of meals provided during the month). The per meal cost would
indicate the expenses actually incurred on meals provided to the guests and assess whether the
meal cost is high/ normal.
o A guest / occupancy register should be maintained at the guest house and all the particulars of the
guest like - Name / Time in / Time out / date of arrival / date of departure / address / Room No
allotted etc should be entered.
o A Meal register / slip should be made to record the details of meals provided to the guests. The meal
slip should be prepared by the caretaker and the signatures of the guest should be taken on the slip.
o The register / slip should clearly indicate the No of Break fast / lunch / dinner /tea / milk / snacks etc
provided to the guest.
o A register / statement of consumables (other than Fixed Assets) should be maintained and all
particulars of items like - buckets / room heaters / mattresses / cutlery / Bed sheets / covers /
utensils should be entered. The Register / Statement should be prepared Room wise.
o In case the guest house is in a rented / leased premises - verify the rental / lease agreement and see
whether the terms and conditions are complied with.

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 Visitors Register at the Reception

o Ensure that the system of issuing Visitors Card to the visitors is in existence. The cards should have a
serial control.
o The visitors Card Number should be entered in the Visitors register.
o The visitors register should be complete in all aspects i.e. all the entries as prescribed in the format
should be filled in properly and completely. No column in the register should be kept as blank.
o The visitors register should be maintained clearly in a legible hand.

Travel - Air / Taxi / Train

o The bookings in respect of Air / Taxi / Train should be made on the basis of Requisition slips. The
Requisition slips should be properly filled in by the employees with necessary details like – Approval
of the HOD / authorized by / Date and time / details of travel / Name and Designation / purpose /
signature etc.
o The Administration Department should not accept the Requisition Slips not filled in completely and
properly.

Stationery

o Ascertain whether there is any system / procedure to ascertain the book quantity of stock of
stationery at any point of time.
o Check whether there is a procedure wherein the opening balances, Receipts, Issues and the closing
balances of each stationery item (costing say Rs.25/- or more per number) are recorded in the
stationery stock Register (manual / computerised).
o Carry out a physical verification of stationery items (costing say Rs.25/- or more) in stock and
compare the physical balances with the book balances and locate the discrepancies, if any.
o Ensure that there is a system of issuing stationery items to various Departments against duly
approved Requisition slips.
o Check whether a monthly statement of stationery issued to various Departments is made. The
statement should reflect the details of items of stationery issued Department wise.

Hotel Reservations / Guest House reservations

· Ensure that there is a proper procedure for making Hotel / Guest House reservations.

· The procedure should ensure that the details in respect of Hotel/Guest house reservations are recorded in a control
book / register. The details should include –

SlNo Name Designation Location Hotel Reservation Type of

of the Name period accommodation
person From
To
(i) (ii) (iii) (iv) (v) (vi) (vii)

Whether booking Bill details Bill paid by Any other

is Bill No. Date (Name / Date/ Mode of information like
confirmed/pending Amount payment) cancellation
(viii) (ix) (x) (xi

· Check whether all the columns of the Control Register are filled in properly and completely. All the necessary details
as given in the format should be entered in the Control Register.

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· Fixed Assets for maintenance - Repair

o A record of fixed Assets for which the Administration Department is responsible for carrying out the
repairs / maintenance or upkeep should be kept by way of a register ( Manual / computerized). The
FA would include Air conditioners, Refrigerators, Water coolers, Fax / photocopy machines,
Electrical Equipment etc. The record should include details of FA like - Quantity / location /
Identification Number / make or type. Check whether such a record of FA is maintained by the
Administration Department.
o A physical verification of such FA should be carried out on a six monthly / annual basis to find out the
discrepancies, if any.

· Renovation and Routine interior maintenance

o Check whether quotations / comparative statements were invited / prepared before issuing a
Purchase / Work Order to a contractor / party.
o Ensure that the Purchase / Work Order were issued keeping in view the commercial considerations -
lowest quotation / offer / profile / experience/ technical competence / recommendation of architects
Engineers etc.
o Check whether the Purchase / Work Order were issued before the start of the work by the parties.
Confirmatory orders should not be issued except under special circumstances.
o Check whether the Comparative statements are duly approved and dated by a competent authority.
o Ensure that the variation between the actual Quantity / Value and the Quantity / Value as per the PO /
WO does not exceed + 5%. The Qty / Value as given in the PO / WO should be as accurate and as
possible and all work should be estimated and planned in advance and provided for in the PO /
WO. The amendments to the PO / WO should be issued in special cases only. The cases of
amendment orders being issued for an increase in the scope of work should be minimum and the
full scope of work / activities should be estimated / calculated in advance.
o Ensure that the amendments to PO / WO are issued before the start of the extended work/scope of
activities and not after the completion of work.

· Colony upkeep / Maintenance

o Check whether the Administration Department has prepared a list of Fixed Assets provided to the
employees at their residential premises.
o Check whether an acknowledgement has been taken in the list of FA provided to the employees from
the employees. The signatures of concerned employees should be taken in the list of FA, as a token
of their acceptance towards having received the FA.
o The Administration Department should carry out a physical verification of FA at the residential
premises of the employees and compare it with the list. The discrepancies if any between the
physical balances and the book balances should be enquired into.
o The Administration Department should maintain a Register / book wherein all the complaints received
from the colony residing employees should be entered into, serially.

· The specific nature of the complaint should also be entered, whether Electrical / Mechanical / Civil / Electronics etc
along with the date / time of lodging the complaint by the employee. Similarly, the date and the time of attending /
rectifying the problem should also be entered along with the signatures of the complainant. The Register would
enable the Administration Department to exercise a proper control over the complaints / maintenance work.

Vehicles
o Ensure that the details of company owned Vehicles are available by way of a register.
o Check whether insurance cover is renewed in time.

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 o Check the Registration books / Insurance papers of all the vehicles to locate any discrepancies, if
any.
o Check whether log books are properly maintained in respect of vehicles. Check the entries in the
log books.
o Ensure that a Vehicles register is maintained and details of running and maintenance expenses in
respect of every vehicle are entered vehicle-wise, giving Bill No / Date and the amount.
o Check whether a monthly exercise is carried out to calculate the running and maintenance cost of
every vehicle per km. This can be worked out by dividing the total of running and maintenance
expenditure by No of Kms run by the vehicle as per the log book. The Administration would know
at a glance the per Km cost of running and maintaining a particular vehicle on a monthly basis.

· Incoming / Outgoing Correspondence

o Ensure that a separate manual register is maintained for the incoming and outgoing correspondence.
o Check whether all the relevant information is recorded in the incoming / outgoing registers.
o The registers should be kept updated at all times and entries should be made on a day to day basis.
o A stamp / seal should be put on the cover of every incoming correspondence indicating the date of
receipt of the document / correspondence.
o A separate record/ register should be kept for documents / correspondence sent through the
Registered post. ( copies of Registry receipts should be preserved).
o A proper record should be kept of Postage stamps.
o In case of Franking machine - check the use and the balance amount at the end of the day.